This equates to 24.4 megawatts of IT capacity that is understood to be used by around 650 network, cloud and IT providers to deliver their services. According to Digital Realty, the sites are at around 72% capacity.

Speaking to Computer Weekly, Steve Wallage, managing director of datacentre market-focused analyst firm Broadgroup, said the sell-off is likely to sharpen the minds of operators mulling over when to embark on some mergers and acquisitions activity of their own.

“The speculation about the divesture of these assets has put a lot of focus on that area for operators, but there is still a bit of caution because some of the datacentre valuations are still quite high,” he said.

Many operators are interested in firms that have facilities in several European markets, but these types of assets are in relatively short supply, prompting some to look further afield.

“They could do a rollup strategy, where they try to acquire an operator in each market and put them altogether [under a single brand], as a big concern for buyers is – if they don’t move soon – there might be nothing left worth spending their money on,” Wallage added.

“We’ve seen a big focus on the big four markets – Frankfurt, London, Amsterdam and Paris – and there is growing interest in some of the less-developed European markets now, including Scandinavia, Madrid and Milan.”

William Stein, CEO of Digital Realty, said the acquisition marks an important step in ramping up the firm’s geographical reach.

“We have made several recent strategic investments in Europe, and this new portfolio – which is concentrated in three of the most strategically important datacentre and interconnection hubs in Europe – will immediately bring on board a large, diversified customer base,” said Stein.

“[It] will also provide significant opportunities to grow and extend our footprint across the continent for years to come.” ... ... ... ... ... ...

Start the conversation

0 comments

Register

I agree to TechTarget’s Terms of Use, Privacy Policy, and the transfer of my information to the United States for processing to provide me with relevant information as described in our Privacy Policy.

Please check the box if you want to proceed.

I agree to my information being processed by TechTarget and its Partners to contact me via phone, email, or other means regarding information relevant to my professional interests. I may unsubscribe at any time.